Digital Transformation Consulting

The client, a chemical company, faced the niche challenge of transitioning from fossil-based raw materials to biomass-based alternatives, specifically 2G biomass, to produce low-carbon chemicals such as ethanol, methanol, and e-methanol. They needed a reliable supply chain and cost-effective production methods amid a global imbalance, with over 70% of biomass produced in Asia, Africa, and South America, while 60% of demand was expected in Northeast Asia and Europe. Additionally, their current capacity for producing biomass platform molecules like 2G ethanol and e-methanol was less than 1% of the estimated demand, demanding a significant scale-up.

To address these issues, the solution involved establishing decentralized, modular production plants in biomass-rich regions utilizing a hub-and-spoke model. This approach aimed to produce 2G ethanol, 2G methanol, and e-methanol locally, reducing transportation costs and logistical complexity, and allowing remote operation with minimal local process know-how. By creating a network of smaller plants near biomass sources, the client could increase supply resilience, diversify raw material sources geographically, and lower overall costs through economies of scale. This strategy also incorporated integrating green platform molecules into existing petrochemical processes to enable the seamless substitution of fossil raw materials.

The client aimed to produce these bio-based chemicals at scale, targeting the expansion of capacity to meet the anticipated demand, which currently stood far below required levels. The initiative also involved addressing the substantial capital expenditure (~€3 trillion) needed to build thousands of new plants and the energy demand (50 TWh/year) predominantly for hydrogen production. Their implementation of remote, regional plants aimed to mitigate transportation costs, improve supply chain resilience, and foster a sustainable, low-carbon economic model. This comprehensive approach was designed to unlock a pathway toward reducing greenhouse gas emissions by approximately 1 gigaton of CO₂ annually, supporting the broader industry shift towards sustainability and decarbonization.